Egypt resumes exchange sales of imported wheat after sharp drop in supplies

Egypt’s Ministry of Supply plans to resume sales of imported wheat through the Egyptian Mercantile Exchange after a break of more than 30 months. The move is aimed at stabilizing the domestic market, supplying private mills with grain and curbing price increases.

Around 10 thsd tons of wheat are expected to be offered in the first session at EGP 16,600–16,650/t, or about $320/t. This is below the current free-market level of EGP 16,900–17,000/t. Each mill will be allowed to purchase between 250 and 500 tons per session.

The return of state wheat to the exchange comes amid a sharp decline in imports. Egypt imported only 480 thsd tons of wheat in July–August, compared with 1.95 mln tons a year earlier, a drop of more than 75%.

The situation worsened further in September, when wheat imports fell 76.6% year on year, while state buyer GASC received no imported shipments during the month. Supply problems involving Russian and Ukrainian wheat, along with broader logistics disruptions, were cited among the main reasons.

The exchange sales are expected to help reduce flour prices. Industry representatives forecast a decline of EGP 500–1,000/t, while some flour grades have already fallen from above EGP 21,000/t to EGP 19,700–20,500/t.

Tags: Egypt, wheat, imports